Northern Ireland Secretary Paul Murphy confirmed that new legislation would be introduced allowing an inquiry into allegations that members of the Royal Ulster Constabulary and British Army intelligence colluded with loyalists who admit to carrying out the murder.

In a statment, Mr Murphy said: "The Government is determined that where there are allegations of collusion the truth should emerge.

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"The prosecution of Ken Barrett has now been completed, with Barrett sentenced to life imprisonment for the murder of Patrick Finucane.

"It is still possible that further prosecutions might result from the Stevens investigation into the murder of Patrick Finucane. The Government has taken into account the exceptional concern about this case."

Mr Finucane was gunned down in front of his family by loyalist Ulster Defence Association gunmen in his north Belfast home.

A report by Metropolitan Police Commissioner Sir John Stevens last year found evidence that rogue members of Army intelligence and RUC officers colluded in the killing of Mr Finucane and student Adam Lambert.

It also emerged today that the Prime Minister Tony Blair has offered to meet Geraldine Finucane to discuss the inquiry.